INCOME TAX CUT OF 1%–3%

According to Deputy Finance Minister Datuk Chua Tee Yong, income tax rates will be cut by up to 3% to offset the impact of the Goods and Services Tax (GST). The move will benefit middle-income earners the most. The GST rate of 6%, however, is not likely to be reduced. To further aid individuals and companies, “many items will be zero-rated or tax-exempted”, Chua added. The GST is meant to replace the current sales and service tax and will be implemented beginning April next year